Platts reported that Malaysia is set to become one of the largest stainless steel producers in Asia with the construction of a USD 1.6 billion plant in the Tanjung Langsat industrial area in the state of Johor.
The plant will be operated by JV Company Bahru Stainless, which is owned 67% by Acerinox and 33% by Nisshin Steel.
Mr Rafael Garvin Salazar MD of Bahru Stainless said that the fully integrated plant would be constructed in 3 phases and would be fully completed in 2020. He added that Malaysia is the only country in ASEAN to have a fully integrated stainless steel plant.
He said that for the first phase, construction of the plant, costing USD 320 million, would start next week and was expected to be completed by end of 2010. The plant will have a capacity of 240,000 tonnes per year, out of which 182,000 tonnes would be cold rolled steel. After the first phase, the company will embark on an expansion program.
He added that "When fully completed in 2020, the plant will have the capacity to produce 1 million tonnes per annum of stainless steel and 800,000 tonnes per annum of cold rolled steel."
Mr Salazar said that 70% of the output would be for export and 30% for the domestic market. He added that the ASEAN market for stainless steel market was growing and expanding whereas the European market was hit by limited growth. Malaysia would be Acerinox"s gateway to the ASEAN and Asia stainless steel markets.